DDP Basics
Under Delivered Duty Paid, the seller arranges freight, customs clearance, duties, and delivery to your door. It is convenient but opaque—make sure you know who the importer of record is and how taxes are calculated.
When to Use DDP
DDP fits lightweight, high-value, time-sensitive shipments or pilot orders where you prefer simplicity. For heavy freight or repeat orders, controlling your own freight (FOB) usually reduces cost and improves transparency.
Controls & Risks
- Clarify duty/tax basis (declared value, HS code) and require evidence.
- Ensure the forwarder is licensed to clear customs in the destination country.
- Ask for transit time guarantees and penalties for missed SLAs.
- Watch for under-declaration risks that can create fines or seizures.
DDP Checklist
- Written cost breakdown: freight, duty, VAT/GST, brokerage, last-mile.
- Tracking milestones and POD sharing.
- Clear return/refusal policy if customs rejects the shipment.
- Keep a backup FOB quote to benchmark DDP pricing before you agree.